(Alliance News) - Armadale Capital PLC on Monday said it has made further progress towards production at the Mahenge Liandu project in Tanzania.
The London-based Africa-focused natural resource projects investor said it has collected environmental baseline data at the project and is assessing logistics routes for the product.
Armadale said it has sped up the development of the mining lease at Mahenge on several fronts, enhancing the progression towards commercial mining operations.
For instance, the company said planning is underway for Geotech drilling to start this dry season, with the sites now prepared for the drill rig.
Discussions continue with the government of Tanzania regarding the framework for its 16% ownership stake, the company said.
Additionally, Armadale said it continues discussions with possible financing partners regarding debt funding required for project development.
Armadale Director Nick Johansen said: "With the global graphite market in the midst of a cyclical upswing, due to strong underlying fundamentals stemming from the buoyant [electric vehicle] sector, the board remains squarely focused on progressing plans to secure the framework agreement with the Tanzanian government regarding the 16% ownership. More importantly, the board is re-doubling efforts to secure long-term project finance from a reputable provider and lining up off-take partners to generate a clear road map to commissioning a viable commercial mining operation."
Shares were down 0.3% at 1.89 pence each on Monday morning in London.
By Xindi Wei, Alliance News reporter
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Armadale Capital (ACP)